Construction projects have many hazards to consider, which are enhanced considerably when working close to existing buildings and structures. 

Even the most considerate, experienced contractor, carrying out works fully in line with risk assessments, method statements and established practices may find there is damage to surrounding properties or structures.

In these situations, where works are near other structures a non-negligent liability insurance policy can be taken out. The cover is also known as 6.5.1 or JCT (Joint Contracts Tribunal) 6.5.1 cover, as this is the clause that refers to it in JCT contract forms. It may also be found in other contract forms and bespoke clauses added to contracts, should deemed to be required and no specific clause applies.

These require that the contractor or employer takes out a policy that protects them in respect of any expense, liability, loss, claim or proceedings incurred as a result of damage to property from the works being undertaken and will usually be a contractual requirement.
It is also possible to include cover from the hazards of flood, explosion, backing up of drains and bodily injury to third parties caused by an insured peril.

The policy is issued in the joint names of the employer and contractor but is primarily to protect the employer as the contractor would only be held liable should negligence on their behalf, when carrying out the works, be proven.

Cover may not always be required for projects close to other structures, as simple projects may not give rise to the type of works likely to cause non negligent damage.

Often projects involving elements of demolition, structural alterations (particularly on properties in poor state of repair or that affect a properties load-bearing capacity), groundworks, underpinning, piling, basements or swimming pools, extensions, heavy landscaping, de-watering, shoring & propping and other hazardous works should include provision to purchase Non-Negligent Liability.

Some typical exclusions from non-negligent cover might include:

• Damage caused by negligence of the contractor or subcontractor.
• Damage which is due to error or omissions during the design process.
• Damage which could reasonably have been foreseen.

Penalties incurred under contract and damages for breach of contract.
If you have a project in a built up urban area or close to other structures then you will need to consider Non-Negligent Liability and PMJ Risk Solutions have access to a number or markets for either standalone cover or in line with the cover for full project, including any existing structure,

Please get in touch to discuss your requirements with the team.